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LLoyds/TBS unfair? loan on old credit card debt - almost X2 org sum?


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Hi, If this is in the wrong area of the forum could a moderator please move it to the correct one, thanks.

 

I am asking advice for my mother ,

she had a credit card with a large balance of £13k with a well known high street bank.

 

 

My parents are both retired and my mother receives a work pension of around £300 , they are certainly struggling at the moment.

 

The repayments on that card were £240.00 a month 3 years ago.

 

She went to the bank 3years ago(same bank as the card ) and asked for a personal loan to pay it off,which they gave her ,

the card was paid off and she has a 7 year loan with monthly repayments of £300.00. (the card is no longer in use)

 

When she told me this i was quite shocked as she will be paying almost £24k when the loan has finished.

It is 23.00 %APR which is ridiculously high.

 

As you can imagine this is leaving her with almost no money and causing financial hardship.

 

Both my parents have been with this bank since the 1960`s (which later split into seperate arms)

,they have never defaulted on anything or had any bad debts.

 

Can anyone suggest something she can do ,

 

 

HAS THE BANK TREATED HER WITH FAIRNESS AND HAS SHE A CASE TO COMPLAIN??

If so who to??

 

She has over £6000 left to pay on the loan and i cant see any mention of PPI (she would have been retired when it was taken out.)

Thanks

 

p.s she is the type to never complain about anything, and i know some would say just default on it but she would never do this.

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is that cheaper than the card rate?

 

 

are you sure there is no ppi here or on the card?

 

 

objectively I cant see irresponsible lending play a part?

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Hi,

I believe but cant be sure that the card APR was more like 16%

i`d have to check with my mother. I believe there was PPI on the card .

 

The loan was arranged in the bank branch (LLoyds Tsb ),her account is now with the TSB and i believe the loan is serviced by LLoyds.

 

It just seems bad advice from the bank to advise a long term customer without any adverse credit history to take out a loan specifically to pay of the card balance ,where she would be paying more each month and ending up worse off.

 

I read through this and it does from reading Section 7 that they may have treated her unfairly and not taken into account her finances.

 

 

They have direct access to her current account so know what regular income comes in to her account.

http://www.lendingstandardsboard.org.uk/docs/lendingcoderevised0915.pdf

 

Thanks

 

Just checked on some statements and i cant seem to see the Apr but my mother says that she thinks it was either 14 or 16% ,

 

 

she had PPI on it but when she started getting into difficulties she cancelled the PPI which knocked around £35 -£40 off the montly payment and shortly after that they raised the APR to around 22% which left her roughly back to the monthly amount she was paying before she cancelled the PPI.

 

One statement from 2009 says montly interest rate 1.492% for purchases and 2.075% for cash advances.

 

The loan was taken out in Nov 2010.

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"...had a credit card with a large balance of £13k with a well known high street bank.." & "...will be paying almost £24k when the loan has finished.

It is 23.00 %APR which is ridiculously high..."

Financial Services Ombudsman

A bank has a duty to take care of its customers. According to Ungoed Thomas, J. (the judge) in Selangor United Rubber Estates Ltd v Cradock [1968] 1 WLR 1555 at paragraph 1608, the duty to take reasonable care extends to all aspects of banking business with regards to the customer in the law of contract. If it applies to all bank business, it must also apply to High Street banks offering credit cards. The standard the bank must demonstrate, Ungoed says, is the equivalent bank standard in the same circumstances: Ungoed.

This is clearly the reasonable bank standard where the bank provides financial products such as a loan to pay off a substantial £13k credit card debt to what is probably a woman either nearing or actually at pension age. If the end result is worse for her then this could be a breach a duty. This will be more so where there is a relationship of trust, where woman is reliant on the expertise and professionalism, and qualification of the bank staff. The reasonable and qualified bank staff especially in their professional capacity ought to be diligent in sourcing financial products to match their customers' requirements especially where the detriment is foreseeable or ought to have been foreseeable by an equivalent in their position. If the end result is a £24k debt from an original £13k debt that is indeed a problem.

Whilst am not a qualified lawyer, I do know that a reasonable bank/ reasonable staff when compared to any equivalents in its or their position ought to have offered a financial product that would have benefitted what is probably an elderly lady not for the debt to nearly have doubled.

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I think and sar to get all the card statements and loan statements is a must here

 

 

by the looks of things this is very unfair now

by what you've said above

 

 

why not give the FOS a ring on this one?

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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It just seems bad advice from the bank to advise a long term customer without any adverse credit history to take out a loan specifically to pay of the card balance ,where she would be paying more each month and ending up worse off.
doesnt surprise bob. loyds staff on commissions, whenever i went in branch they always tried to flog something. they tried it with a packaged a/c with an o/d to service an existing o/d. but i was able to show that i wld be paying more, she seemed bemused!

the banking industry (partic loyds) has been shown up as anything, missold this and that, LiBor, Market abuse, PPI complaint handling, inaccurate records, irresponsibility, weak FoS re, etc. all fact. despite the PPI misuse, they still went on to do the similar thing with packaged current accounts, and no doubt re refinancing. incredible. rant over :)

IMO

:-):rant:

 

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Thanks Ford,

Ive only today discovered that they persuaded her to take out an insurance policy at the time of the loan application from Scottish widows to cover the loan repayments ,this is costing her £20.00 a month.

And all this when she was in retirement.

Do i write to LLoyds TSB first and complain to see what they say (and possibly make amends somehow) and then the FOB or give details straight to the FOB. :-x

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skittish windows refund quite readily when pushed

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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  • 1 month later...

Hi

We sent a complaint to TSB about the loan ,etc.. but no reply after almost 6-8 weeks,

should i have sent it to LLoyds instead of TSB.

Her account was LLoyds TSB, but after they split it is now TSB.

 

Does any correspondance in regards to a credit card that was LLoyds TSB also go to LLoyds .

She was paying PPI for a number of years sometimes almost £100 a month.

 

Does a SAR request on a credit card account give details of all transactions on that account from the date she opened the account?

We have around 4 or 5 years statements but many years missing and some months in between.

 

Who to send the SAR request for the credit card account to for PPI purposes?

We dont want to particularly send £10 to each.

 

Im also confused whether its LLOyds or TSB anything is supposed to be sent to.

 

The last statements on the credit card account she received were from 2010 with LLoyds TSB on them.

The card account is still showing on her TSB account with a credit limit of £200 but she hasn`t used it since 2010.

Strange that they didnt close it despite providing a loan to pay off the debt.

Thanks

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as for the credit card, SAR to Lloyds and see what they come back with before making any ppi complaint

 

the complaints should be then directed to Lloyds

PLEASE HELP US TO KEEP THIS SITE RUNNING

EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 

 

 

Any help I am able to give is from my own experience only. Should you have any doubt you should contact a qualified professional.

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  • 4 weeks later...

Hi We were waiting for the SARlink3.gif request ,which has finally arrived today , we specifically gave only the `card account number` on the request, whats come is all sorts of stuff relating to past loan accounts,current accounts etc but the card information we specifically asked for only goes back to 2002 ,it was taken out before this and there is already over £2000 credit limit on the card back then with the PPIlink3.gif on. Should they have sent all statements or transactions from when the card was taken out????? Rather annoyed at this.

Thanks

p.s this gives us around 8 years of statements on the card account but it may have been open for 10-15 years.

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Phone and ask where the missing statements are

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Hi Dx ,they also state in the letter on top of pile,`` that we have not been able to locate a copy of the original signed credit card agreement!``

Also states ,``please find enclosed a copy of all your available credit card statements.A note is attached detailing the credit card statements no longer obtainable from the banks system``.

Havent found the note yet.

 

How is this going to affect a PPI claim if they dont have statements ?

Do you send in a questionaire PPI claim along with your own calculations or do you initially just send in the FOS questionaire firstly?

Thanks

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credit card is foscisheet

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Yes Dx just realised whilst reading the PPI section. The missing statement appears to be the first one so ,the second and third are dodgy reconstituted statements ,so its making it difficult to get started as there is more columns to fill in and i cant start from a zero balance as the first statement is missing. Any suggestions??

Thanks

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foscisheet not the running one

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?330996-Latest-Spreadsheets-PPI-Claims-and-Charges-Claims-Dec-2011

 

 

you are quite within your right to use an avg for the unknown months

and an avg for the APR too

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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So its the foscisheet ,ive only tried tputting in 2 payments of around £15 from 2002 at 16%APR and it already at £261.50 is that correct seems alot???? Is it 16 you put in the apr box or 0.16 or ??

Thanks

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yep that's ok

if you can prove they charged interest on these charges

then its correct

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Share on other sites

Still seems an awful lot for such small amounts of £15 ???

The later PPI charges are far more almost £100 a month on some statements..

 

IS this what the FOS would award you if Lloyds refused?

 

Also what do you mean by prove they charged interest on these charges???

 

I have all relevant statements less the first one the card started in May 2002 and the PPI was cancelled in 2008 or 2009. The full balance of £13000 was paid off in early 2010 with the loan they provided.

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well ideally what you need to do is set the claim to date to the day the card got paid off.[cisheet]

 

 

then take that total figure and following below

use the statint sheet and workout how much of your monthly payment

of the loan was the rolled in ppi from the cisheet

and what new int was charged on it again

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?318646-PPI-Single-Premium-Your-questions-answered

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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you've left your pers details on it

looks of but does appear to be calcing compound though.

 

 

you might have to use the foscisheet

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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